Principal Investment Officer - Risk Management

Are you a strategic senior investment leader who has considerable knowledge of risk management theory with regard to a multi-asset class portfolio?

The State of Connecticut Office of the State Treasurer is searching for a leader who has significant experience utilizing technology to assess and monitor risk and provide actionable strategies to mitigate risk and dampen overall portfolio volatility in any market environment.  Applications are being accepted for the position of Chief Risk Officer (Principal Investment Officer – Risk Management) to work at our location in Hartford, CT (currently at 55 Elm Street).  This position operates 40 hours per week, Monday - Friday. This is an unclassified position appointed in accordance with Section 3-13a of the General Statutes.

The Office of the State Treasurer exists to provide and ensure effective financial management of public resources, high standards of professionalism and integrity, and expanding opportunity for State of Connecticut residents and businesses.  

The Pension Funds Management Division assists the State Treasurer, as principal fiduciary, in the administration of the $34 billion Connecticut Retirement Plans and Trust Funds (CRPTF). The CRPTF consists of six State Pension Funds and nine State Trust Funds.  The funds are invested in a diversity of asset classes and exist to sustain 212,000 teachers, state and municipal employees, retirees and survivorships, as well as trust funds that support academic programs, grants and initiatives throughout the state.  

KEY RESPONSIBILITIES

The Chief Risk Officer (CRO) reports to the State Treasurer and the Chief Investment Officer (CIO) and has the primary responsibility for completing a variety of risk management projects and analyses.  A key priority for the CRO is to develop an enterprise risk management system for the CRPTF that utilizes advanced risk management concepts and objectives suitable for a large, complex investment program. This role serves to provide an independent view of portfolio risk for the CRPTF.    

Listed below are some of the key responsibilities:  

• Uses advanced quantitative skills to monitor and analyze the CRPTF’s systematic and unsystematic risk exposures on a short and long term basis and periodically reports on findings to the Treasurer and the IAC.  
• Provides recommendations for addressing, managing and mitigating risk at the asset class and overall portfolio level and is primarily responsible for the assessment and utilization of hedging strategies to reduce portfolio volatility.  
• Assists with investment policy development, including asset allocation, incorporating risk metrics into policy targets and ranges to ensure maximum risk adjusted returns.  
• Works closely with the plan and consultant actuaries to analyze liabilities for the various defined benefit pension plans, other post-employment benefit trusts (OPEB) and other trust funds to support liquidity and investment duration requirements.  
• Serves as the system administrator for the CRPTF risk analytics tools, maintains and updates technology as needed in light of changes in the market and trains investment professionals on the use of the risk tools for decision making purposes.  
• Assists in the negotiation of investment manager contracts and fund documents with regard to risk (i.e. cybersecurity, counterparty exposures, etc.). 
• Works closely with asset class principal investment officers to incorporate risk into the analysis associated with structuring and modifying portfolios including additional investments/commitments, asset allocation changes and rebalancing recommendations.  
• Maintain and be responsible for risk data, including external manager data capture and maintenance of internal risk databases.  
• Prepare reports as requested; all other duties as requested.  

All applicants must include a resume within the "Resume Tab" of their application with their submission.  Please Note: You will be unable to make revisions once you submit your application for this posting to the JobAps system.

Should you have questions pertaining to this recruitment, please contact Alex Marcellino, Chief Operating Officer, at alex.marcellino@ct.gov or (860) 702-3005.

Applicants invited to interview may be required to submit additional documentation, which supports their qualification(s) for this position.  These documents may include:  performance reviews, supervisory references, college transcripts, licensure, etc., at the discretion of the hiring agency.

In the Office of the State Treasurer, this class is accountable for completing a variety of risk management projects and analyses of the assets of the retirement plans and trust funds.

GENERAL DUTIES:

Directs the staff and operations of an investment program unit; monitors and reviews unit activities and evaluates performance of staff; coordinates, plans and manages unit activities; coordinates with the Chief Investment Officer to develop and implement policies through preparation and execution of investment strategies; develops and implements long and short term plans to achieve fiscal and economic integrity of State investment programs; conducts feasibility reviews and presents the merits and risks of investment opportunities to the Chief Investment Officer and Treasurer and makes recommendations; may present data relevant to assigned investment program to the Investment Advisory Council; maintains close contact with government and private sector officials (e.g., consultants, money managers, General Partners, external managers, clients of the Investment Division, etc.); monitors world and market events and other factors which could affect investment programs; performs research and analyses of economic indicators in investment markets to project trends and their impact on the investment programs; supervises or conducts periodic reviews of on-going investment programs and recommends adjustments or changes in strategy as required; monitors regulatory, legal, statutory and other rule-making entities for potential changes that may affect the investment landscape and prepares position statements, testimony, comment letters and investment recommendations as appropriate; initiates, supervises, conducts and/or coordinates due diligence of potential investments, external investment managers and vendors and makes the appropriate recommendations; supervises the maintenance of records; performs complex analysis of financial statements, investment valuations, and scenario modeling of investment holdings; prepares reports requested by the Treasurer, Deputy Treasurer, Chief Investment Officer, or Deputy Chief Investment Officer; performs related duties as required.

RISK MANAGEMENT:

A. Recommends risk management strategies to meet policy objectives;
B. Manages risk exposure in line with the asset allocation plan;
C. Initiates and implements compliance programs to ensure that the CRPTF is in adherence to its investment policy and legal contracts;
D. Develops and implements best practices for Investment Risk Management;
E. Analyzes the general partner private equity limited partnerships, ensures transactions are properly posted to master custodian systems, performs performance attribution, compliance with capital call and distributions requests;
F. Performs complex holdings based and returns based modeling of CRPTF investment positions;
G. Performs “what if” scenarios for potential asset allocation changes to determine changes to the risk adjusted outcome.

RISK MANAGEMENT: Considerable knowledge of investment and risk management practices and procedures; considerable knowledge of private market disciplines required for performance of duties; considerable knowledge of ability to apply management principles and techniques; considerable interpersonal skills; strong oral and written communication skills; considerable ability to analyze and evaluate public and private market investments; ability to prepare and model financial and analytical reports; ability to plan and maintain appropriate controls and records of investment transactions; supervisory ability.

RISK MANAGEMENT: A Bachelor's degree in Business Administration, Finance, Accounting, Economics or a closely related field and ten (10) years of progressively relevant investment experience with a public pension plan, foundation endowment, trust organization, investment banking firm or financial consulting firm with responsibility for the formulation and/or implementation of investment policy for substantial portfolios utilizing all major asset classes and strategies.

A Master's Degree in Finance, Accounting, Economics or a closely related field or a Chartered Financial Analyst (CFA), a Certified Public Accountant (CPA), or a Chartered Alternative Investment Analyst (CAIA) is preferred.

Preferences include a Bachelor’s degree in a quantitative field such as science, mathematics, engineering/computer science, quantitative finance, actuarial studies) with 10 years or more industry experience in risk management.  

The successful candidate will demonstrate the following:

• Deep and broad knowledge of pension funds.  
• Proven record of success in both academic and professional pursuits, established outstanding results, and a record of rapid advancement in every challenge undertaken.  
• Superb team building skills with a predisposition to building consensus and achieving goals through collaboration rather than purely direct line authority.  
• Positive, results oriented style, evidenced by listening, motivating, delegating, influencing, and monitoring the work being done.   
• Extremely high-level of energy, sense of urgency, creativity, and decisiveness coupled with the ability/willingness to work hard and well under pressure.   
• Engaging and open interpersonal style complemented by the analytical pragmatism necessary to quickly dissect highly complex issues.  
• Strong operations leadership and management skills.  
• Ability to establish immediate credibility among his/her staff, a professional who is respected for his/her intelligence and technical expertise.  
• A genuine interest in mentoring and developing professional staff members.  
• Unquestionable integrity, credibility and character, demonstrating high moral and ethical behavior.      

Additionally, the successful candidate will possess the following knowledge, skills and abilities:  

• Extensive knowledge of investment concepts, strategies, styles, and analytical methodologies from the total portfolio level to individual security selection.  
• Knowledge of global and domestic macroeconomic and capital market issues relating to investments. 
• Knowledge of statistical concepts, methods and models, and their application to investments.  
• Extensive skill in managing, mentoring and motivating staff to meet organization goals and objectives.
• Extensive skill in negotiating issues and resolving problems.  
• Extensive skill in effective written and verbal communications, including preparing and delivering complex correspondence, reports, presentations, policies and proposals.  
• Ability to promote and maintain harmonious working relationships with co-workers; agency staff; external contacts; and, to work effectively in a professional team environment.  
• Demonstrated ability in developing investment objectives and establishing performance benchmarks, policies, strategies and tactics, for a large diversified pension fund.   
• A strong media relations’ acumen.  Outstanding written, verbal, and presentation skills are required.   
• A strong understanding of the public-sector environment is critical, to include: financial reporting; accounting rules; media interface; and, overall public-sector processes.  
• Experience interfacing and interacting with public boards is desired, as well as with consultants and investment advisors.    

EDUCATION

Candidates should have a Bachelor’s degree in a quantitative field such as science, mathematics, engineering/computer science, quantitative finance, actuarial studies) with 10 year or more industry experience in risk management. An advanced degree in finance, economics, or a related field is preferred.  

AN AFFIRMATIVE ACTION/EQUAL OPPORTUNITY EMPLOYER

The State of Connecticut is an equal opportunity/affirmative action employer and strongly encourages the applications of women, minorities, and persons with disabilities.